Summary by Futu AI
Marvell Technology reported Q3 fiscal 2025 revenue of $1.52 billion, up 7% year-over-year, driven by a 98% surge in data center revenue from strong AI demand. However, net loss widened to $676.3 million compared to $164.3 million last year, primarily due to $715.1 million in restructuring charges as the company shifts focus to data center and AI markets.Gross margin declined to 23% from 38.9% due to $356.8 million in restructuring-related impairment charges for acquired intangible assets, inventories and equipment. The company initiated a strategic restructuring plan in Q3 to increase R&D investment in data center while reducing investment in other markets, resulting in significant asset write-offs and future contractual obligations.Looking ahead, Marvell maintains strong liquidity with $868.1 million in cash and returned $680.6 million to shareholders through $525 million in share repurchases and $155.6 million in dividends during the first nine months. The company's data center-focused strategy aims to capitalize on robust AI chip demand while streamlining operations in other segments.
